By Nelson S.B. No. 1255
76R9285 DWS-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to disclosure or inducing disclosure of a record of a
1-3 customer of a financial institution; providing a penalty.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 30.007, Civil Practice and Remedies Code,
1-6 is amended by amending Subsection (b) and adding Subsections (i),
1-7 (j), and (k) to read as follows:
1-8 (b) This section provides the exclusive method for compelled
1-9 discovery of a record of a financial institution relating to one or
1-10 more customers[, does not create a right of privacy in a record,]
1-11 and does not apply to:
1-12 (1) a demand or inquiry from a state or federal
1-13 government agency authorized by law to conduct an examination of
1-14 the financial institution;
1-15 (2) a record request from a state or federal
1-16 government agency or instrumentality under statutory or
1-17 administrative authority that provides for, or is accompanied by, a
1-18 specific mechanism for discovery and protection of a customer
1-19 record of a financial institution, including a record request from
1-20 a federal agency subject to the Right to Financial Privacy Act of
1-21 1978 (12 U.S.C. Section 3401 et seq.) or from the Internal Revenue
1-22 Service under 26 U.S.C. Section 7609;
1-23 (3) a record request from or report to a government
1-24 agency arising out of the investigation or prosecution of a
2-1 criminal offense;
2-2 (4) a record request in connection with a garnishment
2-3 proceeding in which the financial institution is garnishee and the
2-4 customer is debtor;
2-5 (5) an investigative demand or inquiry from a state
2-6 legislative investigating committee;
2-7 (6) an investigative demand or inquiry from the
2-8 attorney general of this state as authorized by law other than the
2-9 procedural law governing discovery in civil cases; or
2-10 (7) the voluntary use or disclosure of a record by a
2-11 financial institution subject to other applicable state or federal
2-12 law.
2-13 (i) A financial institution or a director, officer, or
2-14 employee of a financial institution commits an offense if the
2-15 person knowingly or intentionally discloses a record of a customer
2-16 to any person. This subsection does not apply to:
2-17 (1) a disclosure required or permitted under this
2-18 section;
2-19 (2) a disclosure authorized by the customer;
2-20 (3) disclosure to an accountant performing an
2-21 independent audit of the financial institution;
2-22 (4) a publication of financial data of the financial
2-23 institution that does not identify a customer or account;
2-24 (5) disclosure of information permitted under Title 1,
2-25 Business & Commerce Code, concerning the dishonor of a negotiable
2-26 instrument;
2-27 (6) the exchange of credit information in the regular
3-1 course of business with another lender or consumer reporting
3-2 agency;
3-3 (7) disclosure to a purported payee or holder of a
3-4 check, draft, money order, or other item, regardless of whether the
3-5 item has been accepted by a payee or holder as payment;
3-6 (8) disclosure to an institution involved in the
3-7 collection of a check, draft, money order, or other item,
3-8 regardless of whether the item would be paid if presented; or
3-9 (9) disclosure made in connection with a financial
3-10 institution's attempt to preserve its rights or determine its
3-11 liabilities with regard to a funds transfer or a check, draft,
3-12 money order, or other item drawn on the financial institution or
3-13 handled by the financial institution for collection or otherwise.
3-14 (j) A person commits an offense if the person knowingly or
3-15 intentionally induces or attempts to induce a director, officer, or
3-16 employee of a financial institution to disclose a record of a
3-17 customer in violation of Subsection (i).
3-18 (k) An offense under Subsection (i) or (j) is a Class B
3-19 misdemeanor.
3-20 SECTION 2. This Act takes effect September 1, 1999.
3-21 SECTION 3. The importance of this legislation and the
3-22 crowded condition of the calendars in both houses create an
3-23 emergency and an imperative public necessity that the
3-24 constitutional rule requiring bills to be read on three several
3-25 days in each house be suspended, and this rule is hereby suspended.